Nebraska is now a tax-exempt state on the sales of bullion, coins, precious metals and paper money.
Gov. Dave Heineman signed Legislative Bill 867 into law on April 2.
During the fall of 2013, the Nebraska State Legislature Tax Modernization Committee held public hearings on the possibility of removing sales tax on coins and bullion products sold in the state.
On Jan. 13, 2014, State Sen. Galen Hadley introduced the legislation. It was presented to the governor on March 31.
According to Section 14 of the law, “Sales and use taxes shall not be imposed on the gross receipts from the sale, lease, or rental of and the storage, use, or other consumption in this state of currency or bullion.”
The new law defines “bullion” as “bars, ingots, or commemorative medallions of gold, silver, platinum, or palladium, or a combination of these, for which the value of the metal depends on its content and not the form.”
“Currency” is defined as “a coin or currency made of gold, silver, or other metal or paper which is or has been used as legal tender.”
The action has long been awaited by businesses to help level the playing field with surrounding states that also offer an exemption, according to Mitch Ernst, president of the Nebraska Numismatic Association and the Omaha Coin Club.
“This new law will not only help businesses, but also to help make coin shows and conventions in this state more attractive to dealers,” Ernst said.
Ernst thanked the Industry Council for Tangible Assets for its valuable advice and counsel.
He said the new law will dramatically affect dealers and urged them to consider joining the Nebraska Retail Federation.